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Rwanda to regulate prices of pharmaceuticals
A policy to regulate prices of pharmaceutical products that was passed last year will go into effect beginning next month. Rwanda says it seeks to end price malpractices with the new policy. Marcel Bahizi, Market and Pricing Analyst at the Rwanda Food and Drug Administration spoke to CNBC Africa for more.
Mon, 20 Sep 2021 10:36:24 GMT
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AI Generated Summary
- The new policy aims to regulate pharmaceutical prices to address price malpractices and ensure transparency in the sector.
- Surveys on pricing and cost analysis are underway as part of the implementation plan for the policy.
- Regulating prices seeks to balance profitability for businesses and affordability for consumers, promoting fair business practices and harmonization in the sector.
Rwanda is set to implement a new policy aimed at regulating pharmaceutical prices starting next month. The move comes as the country seeks to address price malpractices and ensure transparency in the pharmaceutical sector. Dr. Marcel Bainzi, a Marketing Pricing Analyst at the Rwanda Food and Drug Administration, shed light on the process in an interview with CNBC Africa. The policy, which was adopted in October 2020, will focus on various aspects of the pharmaceutical industry, including drugs, consumer goods, veterinary medicines, and more. The first phase of implementation will start with conducting surveys to analyze pricing and costs within the sector.
Dr. Bainzi mentioned that stakeholders have already participated in meetings to discuss the implementation plan. Two surveys are currently underway – a pricing survey to understand the costs of supplies and a cost analysis study to determine the expenses incurred by businesses investing in pharmaceuticals. The surveys have covered a range of locations, from urban centers like Kigali to remote areas like Hombu Island, to assess the varying costs of acquiring pharmaceutical products.
One of the main reasons behind the decision to regulate pharmaceutical prices is the challenges posed by market-based pricing, where costs may not align with the value provided to patients. Dr. Bainzi highlighted issues such as the absence of clear pricing regulations in the private sector, leading to unpredictable price hikes. Moreover, the public sector markup also required revision to prevent escalating costs for insurers and patients. By intervening to regulate prices, the government aims to ensure that pharmaceutical products remain affordable for the end consumers.
The new policy is not meant to hinder investment in the pharmaceutical sector but rather to promote transparency and fair business practices. Dr. Bainzi emphasized that creating a transparent pricing structure benefits both businesses and consumers, as it provides clarity on costs and profit margins. By regulating prices and promoting harmonization in the sector, the government seeks to strike a balance between profitability for businesses and affordability for consumers.
The impact of the price regulation policy extends to both local and imported pharmaceutical products. The government aims to create a level playing field for all stakeholders while safeguarding the interests of consumers. The move is expected to bring stability to the pharmaceutical market and foster trust among investors, ensuring sustainable growth in Rwanda's healthcare industry.
As Rwanda gears up to implement the new pharmaceutical price regulation policy, stakeholders remain optimistic about the positive changes it will bring to the sector. The focus on transparency, affordability, and fair business practices underscores the government's commitment to improving access to essential healthcare services for all citizens.
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